While renewing your bike insurance, you may see a discount on your premium if you didn't file a claim in the previous policy year. That discount or reduction is called a No-Claim Bonus or NCB—an essential incentive for good riding behaviour and a smart way to save on your bike insurance over time. As part of your two-wheeler insurance, NCB encourages safer riding and helps avoid unnecessary claims, which ultimately helps reduce pressure and costs associated with regulatory insurance obligations.
To understand what NCB means in bike insurance, it is helpful to examine the components of your bike insurance premium. Your total premium amount is made up of two components:
- Third-Party Premium: By law, third-party insurance is mandatory and covers liability for bodily injury to or damage caused to third parties.
- Own Damage (OD) Premium: This section of the policy covers damage to your vehicle and is typically where you will receive an NCB discount in the policy.
No-claim bonus in motorcycle insurance applies only to the OD component of your premium and not the third-party portion. For example, if your overall premium is ₹3,000 and ₹2,000 of it is OD, a 20% NCB will apply only on ₹2,000—not the full amount.
It’s crucial to distinguish NCB from other policy discounts like voluntary deductibles, which reduce your premium by increasing your financial responsibility during a claim. In contrast, NCB is purely a reward for maintaining a claim-free record, with no trade-off in protection.
In this comprehensive guide, we'll break down everything you need to know about NCB in two-wheeler insurance—from NCB full form in bike insurance, how it's calculated and transferred, to tips on how to maximise it and frequently asked questions. Whether you're a first-time buyer or a seasoned rider, knowing how to optimise your bike insurance no-claim bonus could lead to significant long-term savings.
What is a No-Claim Bonus in Bike Insurance?
In the world of bike insurance, one of the most rewarding features for policyholders is the No-Claim Bonus (NCB). The NCB in two-wheeler insurance is a cumulative discount that insurers offer on the own damage (OD) portion of the premium when the policyholder has not filed any claim during the preceding policy term. It’s designed as a loyalty incentive and a reward for safe and claim-free riding.
NCB: A Reward for Safe Riding
No-claim bonus in motorcycle insurance is more than a discount—it’s an incentive to ride responsibly, avoid accidents, and consider the consequences before filing claims for minor damages. In a country where millions of two-wheelers ply the roads daily, this system not only benefits individual policyholders but also eases the burden on insurers and encourages a culture of safer streets.
The discount starts at 20% after the first claim-free year and increases incrementally each year, up to 50% after five consecutive claim-free years. This cumulative approach motivates long-term safe behaviour.
Premium Example: With vs Without NCB
Here’s a comparison to illustrate how NCB can reduce your bike insurance premium over the years:
| Year | Claim Status | NCB % | OD Premium (₹) | Discount (₹) | Payable Premium (₹) |
|---|---|---|---|---|---|
| 1 | No-Claims | 20% | 2,000 | 400 | 1,600 |
| 2 | No-Claims | 25% | 2,000 | 500 | 1,500 |
| 3 | No-Claims | 35% | 2,000 | 700 | 1,300 |
| 4 | No-Claims | 45% | 2,000 | 900 | 1,100 |
| 5 | No-Claims | 50% | 2,000 | 1,000 | 1,000 |
This table illustrates how maintaining a consistent claim-free record can result in annual savings of up to ₹1,000, which, over five years, could amount to substantial savings.
The bike insurance no-claim bonus, therefore, offers a dual benefit: it reduces your financial burden while promoting a safety-first mindset on the road.
How is NCB Calculated for Two-Wheelers?
Calculating the No-Claim Bonus (NCB) in two-wheeler insurance is a straightforward but essential process that can lead to substantial savings over time. The NCB percentage you’re eligible for depends on how many consecutive years you've held your bike insurance policy without raising a claim. With each claim-free year, your discount increases, ultimately rewarding your safe and responsible riding behaviour.
Understanding how to calculate NCB for bike insurance helps you better estimate your renewal premiums, plan repairs smartly, and make informed decisions when switching insurers. Let’s break down the NCB calculation process in simple steps to help you take full advantage of this benefit.
Refer to the NCB Slab Based on Claim-Free Years
Insurers follow a standard structure for how to calculate NCB for bike insurance. The longer you ride claim-free, the higher the bonus. Here's the commonly used slab:
| Claim-Free Years | NCB Percentage |
|---|---|
| After 1 year | 20% |
| After 2 years | 25% |
| After 3 years | 35% |
| 2 to 3 years | 30% |
| After 4 years | 45% |
| After 5 years | 50% |
This structured bonus incentivises you to avoid unnecessary claims and be cautious on the road.
Identify Your Current NCB Percentage (20% to 50%)
To check your NCB in bike insurance, refer to:
- Your latest bike insurance renewal notice.
- Your policy schedule is under the "NCB" or "discount" section.
- Contact your insurer or log in to your policy portal.
Knowing your current bonus percentage helps you determine how much you can save on bike insurance during the renewal period.
Apply NCB to the Own Damage Premium Only
A common mistake is assuming that NCB reduces the total premium. But in reality, NCB for bike insurance applies only to the own damage (OD) premium, not the third-party liability portion
If your OD premium is ₹2,000 and your NCB is 20%, your discount is ₹400. If your entire premium is ₹3,500 (including TP), NCB does not apply to the full amount.
Recalculate Premium Post-NCB Deduction
Always recalculate your premium manually or use online calculators to verify the deduction. This helps ensure that your insurer has accurately factored in your NCB.
If you're unsure, use the how-to check NCB in bike insurance option on most insurer websites or aggregators.
Reset NCB to Zero if a Claim Is Made During the Policy Period
This is where NCB becomes a double-edged sword. If you make a claim—even for minor damages—you lose the NCB, and it resets to 0% in the following year.
So, while understanding how to claim a no-claim bonus in bike insurance, it’s equally important to realise that a single claim can wipe out years of accumulated bonus.
How to Transfer No-Claim Bonus?
Transferring NCB is a simple and highly recommended process when switching insurers or purchasing a new bike. If you're wondering how to transfer a no-claim bonus, here's the step-by-step guide:
Step 1: Obtain the NCB Certificate from Your Current Insurer
At the end of your policy term, ask your insurer for a No-Claim Bonus certificate. This document is proof of your claim-free years.
Some insurers issue it automatically; others require a written request. Ensure the details are accurate.
Step 2: Submit the NCB Certificate to the New Insurer
Whether you're changing insurers or vehicles, share the NCB certificate with your new insurer. This enables them to apply the eligible bonus when issuing a new policy.
This is how to claim a no-claim bonus in bike insurance across different companies.
Step 3: Provide Necessary Documents
Along with the certificate, you may need to submit:
- A copy of your previous bike insurance policy.
- Vehicle RC (Registration Certificate).
- New bike details (if applicable)
This is standard practice for how to transfer a no-claim bonus securely.
Step 4: Complete the NCB Transfer Form or Declaration
Most insurers will have an NCB declaration or transfer form. Fill this in honestly. A false declaration could lead to claim rejections later.
NCB is linked to the policyholder, not the vehicle. Yes, NCB is fully transferable to a new bike or a different insurer.
Tips to Maximise Your No-Claim Bonus
Building a substantial No-Claim Bonus (NCB) over time can help you significantly reduce your bike insurance premium. However, to enjoy the full benefits of your NCB in two-wheeler insurance, you must take some innovative and proactive steps to preserve your claim-free record—even when accidents, repairs, or policy renewals become inevitable.
Here are seven actionable tips to help you maximise your NCB and enjoy long-term savings.
Avoid Making Claims for Minor Repairs
This is one of the most important strategies to protect your accumulated NCB. If your bike suffers minor damage—like a scratched panel or broken mirror—it might be tempting to raise a claim. But doing so will reset your NCB to zero, erasing years of benefits.
Let’s understand with an example:
| Scenario | Minor Repair | Insurance Claim |
|---|---|---|
| Repair Cost | ₹900 | ₹900 |
| NCB Benefit (35%) on ₹2,000 OD | ₹700 | ₹0 (Reset to 0%) |
| Net Saving | ₹700 | ₹0 |
In this case, paying for the repair yourself saves more in the long run than using your policy to cover the cost.
Pro Tip: Consider using a local garage or DIY fix for cosmetic damage instead of filing an insurance claim.
Renew Your Policy Before It Expires
Timely policy renewal is crucial. If your bike insurance policy lapses and isn’t renewed within 90 days of expiry, your NCB benefit is forfeited—even if you have a spotless record.
Why it happens: The IRDAI stipulates a 90-day grace period for policyholders to retain NCB. After that, your bonus resets to zero.
How to avoid it:
- Set mobile reminders for your policy renewal date to stay on top of your insurance.
- Choose auto-renewal if offered by your insurer.
- Opt for digital platforms that send timely notifications via SMS or email.
By ensuring seamless renewal, you preserve your NCB and continue to save money on bike insurance every year.
Use Add-ons Like Zero Depreciation to Reduce Claim Need
Zero Depreciation (Zero Dep) add-on is a powerful tool for riders who want to avoid depreciation / deductions during claim settlement. It ensures that your insurer covers the entire cost of replacing bike parts without factoring in wear and tear.
With this add-on, you're more likely to make a claim only for significant expenses rather than minor issues, which helps you make a better decision about when a claim is worth making.
Also consider:
- RTI cover in bike insurance (Return to Invoice): Ideal for new or high-value bikes, RTI cover in bike insurance fills the gap between the IDV and invoice value in the event of total loss or theft.
Together, these add-on covers for two-wheeler insurance give you a financial cushion while helping you make smarter decisions that protect your NCB.
Maintain a Consistent Claim-Free Record
The NCB system is cumulative. The longer you go without filing a claim, the bigger your bonus. If you can complete five consecutive claim-free years, you'll get a maximum 50% discount on your damage premium.
Example:
If your OD premium is ₹2,500:
- With 50% NCB, you pay just ₹1,250.
- That’s a yearly saving of ₹1,250, and over five years, a total of ₹6,250 is saved.
Pro Tip: Avoid lending your bike to inexperienced riders. Their errors could cost you your clean record—and your NCB.
Submit the NCB Certificate When Switching Insurers
If you're moving to a new insurance provider, don’t forget to submit your No-Claim Bonus certificate from your old insurer. It’s your documented proof of claim-free years.
Failing to provide this certificate may result in:
- Your new insurer is charging the whole premium without applying NCB.
- A delay in policy issuance if NCB validation is pending.
Pro Tip: Ask your old insurer to email or issue your certificate digitally—it's faster and more secure than waiting for a physical copy to arrive.
Conclusion
The No-Claim Bonus (NCB) is more than just a discount on your bike insurance—it's a long-term reward for responsible riding, financial prudence, and informed decision-making. Over time, the NCB can significantly reduce your two-wheeler insurance premiums, allowing you to save as much as 50% on the damage component of your policy.
However, the value of NCB extends beyond savings. It promotes careful driving, encourages thoughtful claim decisions, and contributes to a safer road environment for everyone. By avoiding small or unnecessary claims, you not only protect your wallet but also help keep insurance costs lower for the entire riding community.
NCB also adds flexibility. Whether you're renewing with the same insurer or switching providers, your bonus can travel with you, making it an asset worth preserving.
To truly make the most of this benefit, stay informed. Recalculate your premiums each year, be cautious about claims, and keep track of your NCB status. Use insurer tools or online platforms to check your NCB today, and if you're unsure, reach out to your insurer for clarification.
Before you hit renew, take a minute to run your details through an NCB calculator. That small step could lead to hundreds—if not thousands—of rupees in savings over the next few years.
In short, the NCB is your reward for being a responsible rider. Protect it, use it wisely, and let it work in your favour every time you renew your bike insurance.
FAQ
Yes. NCB is linked to the policyholder, not the vehicle. When switching insurers or buying a new bike, you can transfer your existing NCB using a certificate.
Yes. Even a single claim resets your NCB to 0% in the following year. However, using add-on covers for two-wheeler insurance can reduce your need to file small claims.
You can request it from your current insurer at the time of policy termination or vehicle sale. It’s a key document on how to transfer a no-claim bonus successfully.
No. NCB only applies to the own-damage premium in comprehensive or standalone own-damage policies, not to third-party-only plans.
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